The US benchmark WTI (West Texas Intermediate) crude oil futures contracts for December delivery fell by 2.9% and settled at $44.29 per barrel on November 11, 2015. Prices hit lows seen in August due to estimates of rising inventory in the oversupplied market. ETFs like the United States Oil ETF (USO) and the ProShares Ultra DJ-UBS Crude Oil ETF (UCO) moved in the direction of WTI oil prices in yesterday’s trade. These ETFs fell by 2.3% and 4.8%, respectively, on November 11, 2015. On November 10, 2015, the API (American Petroleum Institute) reported that crude oil stocks rose by 6.3 MMbbls (million barrels) for the week ending November 6, 2015. Market surveys from Bloomberg project that crude oils stocks could rise by 1.3 MMbbls for the same period. The consensus of rising crude oil stocks is putting pressure on crude oil prices.
American Dollar to Canadian Dollar = 0.750053; American Dollar to Chinese Yuan = 0.148963; American Dollar to Euro = 1.131730; American Dollar to Japanese Yen = 0.008953; American Dollar to Mexican Peso = 0.051944.
Oil is down 27 percent this year on speculation a global glut will persist amid the outlook for increased exports from Iran after the removal of sanctions and brimming U.S. crude supplies. The nation’s stockpiles are still more than 130 million barrels above the five-year average, even after dropping by 754,000 barrels, according to Energy Information Administration data. WTI for March delivery dropped as much as $1.10 to $26.35 a barrel on the New York Mercantile Exchange and was at $26.44 at 11:35 a.m. London time. The contract slid 49 cents to $27.45 on Wednesday to the lowest close since Jan. 20. Total volume traded was about double the 100-day average. WTI declined 30 percent last year.
The oil market is now in balance due to unplanned outages and robust demand, particularly from emerging economies, but this equilibrium will tip into surplus again early in 2017, the International Energy Agency (IEA) said on Tuesday. U.S. output will shrink by 150,000 barrels a day in the quarter 3 2016 compared with the first half as producers cut production due to a low oil price environment. Front-month US crude futures CLc1 were down 56 cents, or 1.2 percent, at $47.45 a barrel at 0043 GMT. Unfortunately, the IEA believes the past three years of supply build at an average rate close to 1 million barrels per day still mean an "enormous inventory overhang" must be cleared before the industry can expect any significant increase in oil prices. It said India would drive oil demand growth with China adding some support to that demand growth.